Toy and clothes shops the losers as chains shut 32 shops a day

Retail chains are shutting shops at a rate of 32 a day across the UK, research reveals today.

Retail chains are shutting shops at a rate of 32 a day across the UK, research reveals today.

The figures are an increase from 20 a day in the first six months of 2012 as Britain’s high street suffers amid a consumer spending slump, according to data compiled for PwC by the Local Data Company (LDC).

High profile administrations of retailers including Game, Cardiff-based Peacocks and Clintons saw the number of town centre chain store closures soar to 953 in the first half on a net basis – 18 in Wales – worked out by the number of stores opening subtracted from those closing.

Among the retailers to have collapsed in recent months, 133 JJB Sports stores are to close across the country despite a deal to sell 20 to rival Sports Direct International.

Many chains are also pulling out of loss-making sites and putting expansion plans on hold to weather tough trading.

Rob Lewis, regional chairman for the West and Wales region and PwC Deals partner, said: "All retailers in distress have too many locations. The insolvencies of Game, Peacocks and Clintons demonstrated this in spades.

“Relatively long leases, with inflexible terms, have been entered into in a growth phase of the economy which is no longer appropriate.

“Where over-expansion has already taken place, retailers need to face that reality and formulate a strategic plan in partnership with landlords, not in confrontation with them.

“There are sophisticated tools to analyse the extent to which sales from closed stores migrate to a retailer’s other locations. Properly managed, a large part of the lost sales can be regained.

“Retail is increasingly becoming a partnership between the store group, its suppliers and the owners of its locations. Like any partnership which falls on hard times, dialogue involving all partners is key.”

Mike Jervis, PwC insolvency partner and retail specialist, said retailers need to work with landlords to help stem the flow of company failures.

“Where over-expansion has already taken place, retailers need to face that reality and formulate a strategic plan in partnership with landlords, not in confrontation with them,” he added.

There were 7% more discount stores in the first six months on a net basis and 11% more payday loan outlets.

The research also showed there were 11% more bureaux de change, 5% more convenience food stores, 8% more pawnbrokers and another 1% of charity shops.

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